presents
THE THREE BLACK CROWS
Introduction
Surely, brokers would dislike the fact that their traders could steadily earn any sort of profits. However, even a minority of their members should still be able to gain or even the “stingiest” of these brokers would be forced suspend.
For the health of any broker, it will always be in their interest to allow a percentage of such winners, as they carefully control a balance between those with revenue and those without.
Yes, so these winners exist, but how?
However, one must wonder… are these systems the real deal, or just another chance for me to waste even more?
We consider these strategies suitable and satisfactory, they have sprung with the help of the most classic of techniques, and aided from all those who have been deeply involved in the experience through binary options.
A definition of a good strategy is to be clearly explained and well understandable, or risk leaving the trader in a myriad of doubts that would ruin their confidences to proceed. In such a case, a broker would provide the best impression possible, by providing strategic tips that would help maintain such confidences. Though many are still losing anyhow.
But for the broker, the mission would have been accomplished, they have robbed you blind and they are satisfied.
Advertising a broker that caters to those too ignorant to know anything about ‘binary options’ is no longer the profitable route to business. Most traders have been burned for far too long and as a consequence have become increasingly careful and alert. So it seems that we have become bombarded with ads and messages disguised as ‘insightful’ and ‘clever’, to hide the fact that they need our attention to extend the scam.
It is time to expose the reality that their arguments have failed to be shown in the necessary light and clarity. We will do our best to deliver such a promise and to provide our traders with the helpful guide they deserve. We see ourselves, then, to be a part of those who can succeed.
So we begin with the first of the series:
The Trading System
The trading strategy “3 Black Crows” is aimed at to find the downward reversal on the uptrend
Find a strong uptrend consisting of several ascending candles in a row.
Closing of the third candle is a signal for an uptrend turning to a downtrend.
Find Out More
Downtrend
Meanwhile, here will surface the name: Three Black Crows.
It refers to a shape (or pattern) of candles which is used to predict a change of the current trend from positive to negative.
Although the name refers to a situation of rising trend, it is clear that the rules also apply to the trend that heads on the opposite, with the necessary and logical changes made.
Three candles would pattern in a long and definited body, each of which has the closure lower than that of the previous candle.
The appearance of the candle combination of these Three Crows is a sign of lack of confidence by investors in the current uptrend.
This pattern is used to predict the end of an upward trend, and traders often confirm this signal through other technical indicators to make sure that the “momentum” is about to change.
The “several ascending candles” in succession indicated by IQ Option is to be considered indicative and not to be taken literally.
Indeed, the candles can also be interspersed with one or more small bearish candles.
It is up to the traders to assess the strength of this positive trend.
No doubt this figure of three candles, the “Three Black Crows”, is considered a very strong signal of change, especially when following a trend that is strongly heading upward.
The first candle would be formed by a long body, typically with a short upper and lower shadow, driving the price in the opposite direction after a decided uptrend.
The two following candles opens within the body of the previous candle, and they will shut quite significantly below the closing of the latter.
The reason why this pattern is considered a strong indicator of a changing course in the market is given thanks to the disappearance of the upward trend, replaced by a very strong and sustained sell signal.
Of course there is also the reversed pattern, which is formed in case of transition from negative to positive trend, that is, oppositing of what has been presented and all that has been previously explained this will also apply to the opposite case.
The name of this new figure would be “The Three White Soldiers“.
The color patterns, black or white, reminiscent of that used in some graphics, white and black for candles bullish to bearish ones.
Entry Strategy
A common entry strategy used in forex and binary options is applied when the trader identifies the pattern of the Crows, and consequently place themselves into a PUT option by the end of the third candle.
For example, if the value by Eur/Usd has reached an uptrend that is 1.1300, and the first two candles which is presumed to be prepared to form the pattern bring the price down to the value of 1.1260 (4 pip less), with the second candle that closes at 1.1260 and the third which opens and closes at 1.1265 to 1.1240, then the trader would prefer to purchase in PUT as soon as the next candle opens.
Next to the pattern of the 3 crows, whatever its value may be, the closure of the third candle in the Crow pattern confirms the downtrend.
Of course, if the pattern of the three black crows is not fully formed it will suspend entry.
Conclusion
The strategy described here is not our interpretation of what is briefly mentioned by IQ Option, but a trading technique also described by other noteworthy sites.
Often clear and understandable, these is confirmable by researching through the web.
If applied correctly it should provide interesting results.
Nobody forbids to combine the technical input to another indicator with which it is familiar.
Remember that any trading systems too complex, cluttered with too many indicators, will often result in disappointing outcomes.
Simplicity, money managing and tranquility rewards a trader. Fundamental rules that must be respected.
Happy Trading
FreeOne Traders Team
